Pros
- Offers a very wide selection of mortgage loan programs.
- Provides manual underwriting for non-traditional borrowers.
- Strong focus on helping first-time and minority homebuyers.
- Features flexible loan terms with its I CAN mortgage.
- Services most of the loans it originates in-house.
Cons
- Does not advertise mortgage rates on its website.
- Requires speaking with a loan officer for a rate quote.
- Customer satisfaction reviews from third parties are mixed.
- Mortgage services are not available in the state of Hawaii.
About New American Funding Mortgage Purchase
Finding the right mortgage lender is a critical step in your homebuying journey. New American Funding stands out as a large, family-owned mortgage company. Founded in 2003, it has grown into one of the nation’s top lenders. The company prides itself on a mission to help all families achieve homeownership. They have a strong focus on serving diverse and underserved communities. This commitment is shown through their targeted initiatives and bilingual support. As a direct lender and servicer, they manage your loan from application to final payment. This can create a more seamless and consistent experience for borrowers.
Key Features
New American Funding provides several standout features designed to make homeownership more accessible. These programs and services set them apart from many other lenders in the market. From flexible payment plans to inclusive underwriting processes, their offerings cater to a wide range of financial situations. Explore these key features to see how they might benefit your home purchase process.
- I CAN Mortgage: A custom-term loan allowing you to choose a term between 8 and 30 years.
- Manual Underwriting: A human-centered review process for applicants with unique credit or income profiles.
- Buydown Options: Programs that temporarily lower your interest rate for the first one or two years of your loan.
- In-House Servicing: The company manages your loan payments after closing, providing a single point of contact.
- Focus on Diversity: Specific initiatives to boost homeownership rates in Black and Hispanic communities.
Available Loan Program
A broad selection of loan types is essential for meeting the varied needs of homebuyers. New American Funding excels in this area by offering both standard and specialized mortgage products. Whether you are a first-time buyer with a low downpayment or need a large loan for a luxury home, they likely have a program for you. Their diverse portfolio ensures more paths to getting the keys to your new house. Here’s a detailed look at their main mortgage offerings.
Conventional Loans
Conventional loans are a popular choice for borrowers with strong credit and stable finances. These mortgages are not insured by the government. They often require a down payment of at least 3% to 5%. Borrowers with down payments under 20% will typically need to pay for private mortgage insurance (PMI). New American Funding offers fixed-rate and adjustable-rate conventional mortgages to suit different financial strategies.
FHA Loans
Backed by the Federal Housing Administration, FHA loans are great for first-time buyers. They are also ideal for those with lower credit scores. These loans allow for down payments as low as 3.5%. The credit requirements are more relaxed compared to conventional loans. This makes homeownership possible for a wider group of people. New American Funding is experienced in guiding buyers through the FHA loan process.
VA Loans
VA loans are a powerful benefit for active-duty members, veterans, and qualified surviving spouses. Guaranteed by the Department of Veterans Affairs, these loans often require no down payment. They also do not require PMI – Private Mortgage Insurance. This can save you a significant amount of money. New American Funding has loan officers who specialize in helping military families use their VA loan benefits.
USDA Loans
If you plan to purchase a home in a designated rural or suburban area, a USDA loan might be perfect. These loans, backed by the U.S. Department of Agriculture, also require no down payment for eligible borrowers. There are income limits for this program. The goal is to promote homeownership in less populated areas. Your loan officer can help determine if you and your desired property qualify.
Specialty Mortgages
Beyond standard loans, the company offers unique products. The I CAN mortgage lets you pick a loan term from 8 to 30 years to match your financial goals. They also offer Buydown Loans, which reduce your interest rate for the first one or two years. This helps you ease into your mortgage payments. These options provide valuable flexibility for managing your housing costs.
New American Funding Features
New American Funding integrates technology and a human touch to serve its customers. They offer several features designed to support borrowers from the start of their search to long after they move in. These tools and philosophies can make a big difference in your experience. The company emphasizes accessibility and support throughout the mortgage process.
- Manual Underwriting: This is a key advantage for certain buyers. If you are self-employed or have a complex financial history, an underwriter can manually review your file. Automated systems might reject such applications. This human review provides a path to approval for qualified but non-traditional applicants.
- Digital Tools: Borrowers can apply for a mortgage online through a secure portal. The lender also has a mobile app. You can use it to upload documents, track your loan’s progress, and make payments on your mortgage after closing. This convenience helps streamline a complex process.
- Educational Resources: The company’s website features a blog with helpful articles and guides. These resources cover topics from improving your credit to understanding the closing process. This information can empower you to make more confident financial decisions.
- Commitment to Homeownership: The lender has specific programs to support minority homebuyers. Their Latino Focus and New American Dream initiatives aim to increase homeownership rates within Hispanic and Black communities through education and outreach.
Rates and Fees
Understanding the full cost of a mortgage is crucial. New American Funding does not post its interest rates online. This is because rates are highly personalized. They depend on your credit score, down payment, loan type, and location. To get an accurate rate, you must speak with a loan officer for a custom quote. However, you can prepare for the various fees associated with getting a mortgage. These closing costs are separate from your down payment.
Most lenders charge fees for creating and processing your loan. New American Funding is no different. Be prepared for costs such as an origination fee, appraisal fee, and title search fees. Always ask for a Loan Estimate document. This form clearly breaks down all the expected costs.
| Fee Type | Typical Cost Range | Description |
| Origination Fee | 0.5% – 1.5% of loan amount | A fee charged by the lender for processing the loan application. |
| Appraisal Fee | $400 – $750 | Pays for a professional appraiser to determine the home’s market value. |
| Credit Report Fee | $30 – $60 | Covers the cost of pulling your credit history from the major bureaus. |
| Title Insurance | Varies by location and home price | Protects you and the lender from issues with the property’s title. |
| Underwriting Fee | $300 – $900 | The cost for the lender’s underwriter to review and approve the loan file. |
How to Apply?
Starting your mortgage application with New American Funding is a straightforward process. The journey involves several distinct stages from your initial inquiry to closing day. Knowing what to expect can help you prepare and ensure everything goes smoothly. Follow this step-by-step guide to navigate their home purchase loan process with confidence.
- Get Pre-Approved: The first step is to connect with a loan officer. You can start by filling out a short form online or by calling the company directly. You will discuss your finances to determine how much you can afford to borrow.
- Provide Your Documents: To verify your information, you will need to supply several documents. This typically includes recent pay stubs, W-2s, federal tax returns, and bank account statements.
- Complete the Application: Once you have found a home and have a signed purchase agreement, you will complete the full mortgage application. Your loan officer will guide you through this official document.
- Processing and Underwriting: Your application then moves to the processing team. They will order a home appraisal and verify all your information. An underwriter will then review the entire file to give final loan approval.
- Receive Final Approval: Once the underwriter is satisfied, you will receive a “clear to close.” This means your loan is fully approved, and you can schedule your closing.
- Attend Closing: At the closing, you will sign the final loan documents. You will also pay your down payment and closing costs. After all papers are signed, you will receive the keys to your new home.
Customer Support
Good customer support can make a stressful process much easier. At New American Funding, your primary point of contact is your dedicated loan officer. This person guides you from the pre-approval stage all the way to closing. They are there to answer questions about your loan status, document requests, and next steps. This personalized approach is helpful for navigating the complexities of a home purchase. After your loan closes, support shifts to their servicing department. As they service most of their own loans, you will continue to work with them for payments and account questions.
The Final Verdict
New American Funding is a strong mortgage lender with a clear mission. They are an excellent choice for first-time homebuyers and those in diverse communities. Their flexible loan programs and commitment to manual underwriting open doors for many borrowers. If you are self-employed, have a unique income situation, or have less-than-perfect credit, their personalized approach could be just what you need. The ability to customize a loan term with the I CAN mortgage is a significant benefit for long-term financial planning.
On the other hand, this lender may not be the best fit for everyone. If you prefer to compare interest rates online without speaking to someone, you will be disappointed. Their lack of rate transparency requires you to engage with a loan officer first. While many customers report positive experiences, some third-party reviews mention communication issues. As with any major financial decision, it is wise to compare offers from multiple lenders. Getting a quote from New American Funding is a worthwhile step, especially if their unique programs fit your borrower profile.